Demerger of Century Textiles to UltraTech Cement

The Board of Directors of UltraTech Cement Ltd confirmed that Century Textiles will demerge its 'Cement Business' into UltraTech, in a company statement.

"The transaction provides UltraTech the opportunity for further strengthening its presence in the highly fragmented, competitive and fast growing east and central markets and extending its footprint in the western and southern markets in the country," said UltraTech's statement. 

The transaction is expected to be consummated within 6-9 months. Walker Chandiok & Co LLP and Bansi S Mehta & Co were the independent joint valuers, Axis Capital provided the fairness opinion and Khaitan & Co and Trilegal (Competition Law aspects) were the legal advisors.

Upon consummation, the company's cement capacity will stand augmented to 109.9Mta including its overseas operations. This will position UltraTech as the third-largest cement player globally (excluding China).